Ports of Auckland has reported a modest loss because of the costs of its failed automation project, while revenue increased faster than costs.
Auckland is the country's biggest import port and it says freight volumes have held up well. Photo: RNZ / Kymberlee Fernandes
The council-owned port made a loss of $10.3 million for the year ended June on the back of a $63.1m write-off of the costs of its attempt to automate its container handling operation.
The company made a profit of $45.6m the year before.
Stripping out one off costs the ports' underlying profit was $27.4m, up a third on the previous year, with revenue rising 17 percent to $265.3m.
"This has been a year in which we have started to rebuild the foundations for Ports of Auckland's future as a safe, customer-focused and profitable organisation," the company said in a statement.
Auckland is the country's biggest import port and it said freight volumes had held up well despite global supply chain disruptions and congestion in New Zealand, with cargo volumes rising 8 percent to 10.8 million tonnes.
The container automation project was scrapped in June after years of delay and problems getting the necessary software to work properly, leading Auckland mayor Phil Goff to say he was "brassed off" with the port's board which had approved the project.
The port had also been under pressure over health and safety practices following the death of several workers in recent years. It culminated in a report which said the port had systemic problems involving risk management and organisational culture, which did not reflect the level of risk inherent in port operations.
The company said it had implemented all but two of the review's recommendations, involving fatigue management and training, which needed more time to be put in place.
"There is a positive change in our safety culture ... staff are empowered to speak up if they see something that's unsafe."
The government has since ordered a broader inquiry into health and safety in ports around the country following two deaths within a week earlier this year.
The port said it was now focused on the core business of cargo-handling, cruise ships and marine businesses, and was expecting a profit before any property revaluations of $35m.
It paid the Auckland Council a full year dividend of 9.7 cents per share, nearly four times the amount of the year before, worth $14.2m for the year.
